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Explain the convergence hypothesis with respect to economic growth.

Explain the convergence hypothesis with respect to economic growth.

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The plan of convergence in economics is hypothesis that substandard [ poor ] economies , the per capita income will bend to surmount at faster rate than wealthy economies . As a outcome , all economies should lastly converge in preconditions or terms of the per capita income .

  • It is sometimes also known as CATCH-UP EFFECT .
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